China’s central bank boosted interest rates again Tuesday in a move that may take some steam out of the rally in exchange traded funds (ETFs) that track Chinese stocks the past two weeks.
The iShares FTSE China 25 Index Fund (NYSEArca: FXI), the largest China ETF by assets with $8.3 billion, has surged since mid-March.
However, China’s central bank raised rates Tuesday for the fourth time since October ahead of inflation data next week.
The China ETF’s recent really has pulled the fund above its 50-day moving average.
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